InvestSMART

InvestSMART Performance Update: May 2024

A look at InvestSMART's portfolio returns for the 12 months to 31 May 2024
By · 17 Jun 2024
By ·
17 Jun 2024 · 5 min read
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In May, markets surged to all-time highs, driven largely by the continuing tech boom in the U.S. InvestSMART's diversified portfolios have benefited from these market highs, delivering robust returns ranging from 5.6% to 14.0% over the 12 months ending 31 May 2024. 

Our commitment to strategic diversification and low fees have consistently yielded impressive outcomes. Over the past five years, our portfolios have delivered average annual returns between 2.4% and 8.5%, outperforming the majority of comparable funds across all our portfolio categories.

The chart below shows InvestSMART's performance over five years compared with the average annualised returns of our competitors' funds.

The InvestSMART single asset portfolios returned between 3.8% (Cash Securities) and 19.8% (International Equities) in the 12 months to 31 May 2024 and between 1.3% and 12.7% on average over five years. 

May wrap up 

International share markets rebounded in May, straight off the back of the declines in April, as noted above the US tech majors led the gains in the US. In addition to the technology industry, the relationship between shares and bond yields has been on display, with government bond yields falling as US inflation has stabilised and the US Federal Reserve indicating it was unlikely to raise interest rates. Lower bond yields and a US CPI inflation report which was in line with investor expectations, helped to boost investor sentiment which contributed to the MSCI All-Country World Equity Return Index closing 3.7% up in May. 

It was a more subdued story in Australian share markets, with the S&P/ASX 200 index up just 0.5% for the month. Inflation rose for the fifth month in a row, sparking fears rates would not be lowered soon.

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Frequently Asked Questions about this Article…

In May 2024, InvestSMART's diversified portfolios benefited from market highs, delivering robust returns ranging from 5.6% to 14.0% over the 12 months ending 31 May 2024.

Over the past five years, InvestSMART's portfolios have delivered average annual returns between 2.4% and 8.5%, outperforming the majority of comparable funds across all portfolio categories.

The InvestSMART International Equities portfolio had the highest return among single asset portfolios, with a 19.8% return in the 12 months to 31 May 2024.

International share markets rebounded in May 2024, with the MSCI All-Country World Equity Return Index closing 3.7% up, driven by gains in US tech majors and stabilizing US inflation.

The positive performance of US markets in May 2024 was driven by gains in the technology sector, falling government bond yields, and a US CPI inflation report that met investor expectations.

The Australian share market had a more subdued performance in May 2024, with the S&P/ASX 200 index rising just 0.5% for the month amid rising inflation concerns.

In May 2024, the relationship between bond yields and share market performance was evident as falling government bond yields, due to stabilizing US inflation, helped boost investor sentiment and market gains.

Strategic diversification is important because it helps spread risk across different asset classes, which can lead to more consistent and robust returns, as demonstrated by InvestSMART's diversified portfolios.